* Plant is Chrysler Group's first with innovative flexible
manufacturing * Second shift to be added later this year * Smart
manufacturing process being implemented * Compact Jeep model offers
performance, fuel economy and value

AUBURN HILLS, Mich., Jan. 9 -- The Chrysler Group today announced that
the all-new 2007 Jeep(R) Compass, revealed today at the North American
(Detroit) International Auto Show, will be produced at its Belvidere (Ill.)
Assembly Plant. The Jeep Compass is an all-new kind of Jeep that is compact
and nimble and is the right size for world markets. Compass will offer
performance, fuel economy and value in the highly competitive compact SUV
segment.

The compass will be built on the same production line as the all-new
2007 Dodge Caliber that began production this month. Both models will be
built using Chrysler Group's innovative flexible manufacturing process
which can build three to four different vehicles and test-build another
model all on the same production line.

"When the new Jeep Compass begins to roll off the assembly line later
this year, we will for the first time realize the flexibility benefits of a
new and exciting manufacturing process. We believe this is a competitive
advantage for the Chrysler Group," said Frank Ewasyshyn, Executive Vice
President - Manufacturing, Chrysler Group. "These new tools allow us to
react to customer preference more quickly and easily in order to better
satisfy our Chrysler, Jeep and Dodge customers and possibly capture
additional sales."

"The team at the Belvidere Assembly Plant has been rewarded with
state-of- the-art facilities and processes and we are poised to operate at
world-class levels of quality and productivity," said Kurt Kavajecz, Plant
Manager - Belvidere Assembly Plant. "With the recent launch of the Dodge
Caliber, the pending launch of the Jeep Compass and the addition of a
second shift, a bright future stands before our employees and the
surrounding community."

At its heart, the new manufacturing process consists of a new type of
body shop that is wholly made up of robotics and is devoid of traditional
"hard" tooling dedicated to a particular vehicle. The robots, which can
automatically change their own tooling to accommodate multiple models
within a 42 second cycle time, could also accommodate a third model and
pilot a fourth. With the new process, next generation product changeovers
will cost a fraction of traditional changeovers. The process is also being
implemented at Chrysler Group's Sterling Heights (Mich.) Assembly Plant and
St. Louis South (Fenton, Mo.) Assembly Plant.

Along with the new technology, the Belvidere Assembly Plant is
implementing a new workplace culture on the plant floor. As with other
manufacturing operations in the Chrysler Group system, new "smart
manufacturing" processes will foster greater creativity and innovation on
the plant floor and include work teams, self-designed work stations, a
framework for flexible job classifications and extensive employee training.
All these factors work cohesively to create a better work environment and
give increased support to assembly line operators.

Along with other process improvements, such as an adjacent incoming
parts sequencing center, the changes are designed to improve vehicle
quality and plant productivity.

The 3.6 million square foot Belvidere Assembly Plant has 2,000 employees
and is home to United Auto Workers Locals 1268 and 1761.